RPT-Weaker loonie no savior for ailing Canada auto sector, execs say

TORONTO Feb 17 (Reuters) - A strong Canadian dollar has
wounded the country's auto manufacturing sector over the last
decade, but the currency's recent drop to a near six-year low is
unlikely to spur a rush of new investment, say senior industry
executives.

Canada has struggled in recent years to win new investment
from automakers, losing out to both the United States and
lower-cost Mexico. While some major automakers have announced
new investments in Canada in recent months, they are expected to
preserve jobs rather than significantly increase employment.

Reid Bigland, chief executive of Fiat Chrysler's
Canada arm, said the currency was not a major factor in the
company's recent plan to invest some $2 billion to build its
next generation minivan in Windsor, Ontario, as the choice was
made before Canadian dollar's recent slide.

"Under normal circumstances, when it comes to Canadian
manufacturing, when the Canadian dollar goes down it's really an
opportunity to strike up the band," Bigland told Reuters on the
sidelines of the Canadian International Auto Show in Toronto.
"Unfortunately the (Canadian) dollar has been strong for so long
that a lot of the band has left."

In 2014, car makers announced over $10 billion in
investments in the United States, some $7 billion in Mexico, and
only about $750 million in Canada, according to the Center for
Automotive Research.

Bigland said Chrysler has lost local suppliers to the strong
Canadian dollar, to the point where only 25 to 30 percent of
those serving its Windsor operation are Canadian. He noted that
in the last few years, Canada has also lost former Caterpillar,
Daimler, Ford and Navistar plants, among others.

In 2013 the Canadian Automotive Partnership Council, an
industry group, looked at challenges facing the industry.
Exchange rates made the first page of their report.
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